What Is the Minimum Car Insurance in New York?

New York's Minimum Insurance Requirements

New York requires more coverage than most states:

Liability Coverage (25/50/10)

$25,000 bodily injury per person: • Covers medical bills, lost wages, and pain and suffering for one person you injure • If costs exceed $25,000, you're personally liable • Example: You cause an accident injuring someone with $60,000 in medical bills. Insurance pays $25,000; you owe $35,000.

$50,000 bodily injury per accident: • Total coverage for all people injured in one accident • Shared among multiple victims • Example: You injure three people with combined medical bills of $90,000. Insurance pays $50,000; you owe $40,000.

$10,000 property damage per accident: • Covers damage to other vehicles, buildings, and property • Average vehicle repair costs exceed $10,000 in moderate accidents • Example: You total someone's $35,000 Honda Accord. Insurance pays $10,000; you owe $25,000.

Personal Injury Protection – PIP ($50,000)

New York is a no-fault state. Your PIP covers: • Your medical expenses (up to $50,000) • Lost wages (up to 80% of average weekly wages for 3 years) • Necessary services (household help, childcare) up to $25/day • Death benefit: $2,000 for funeral/burial expenses

PIP applies regardless of who caused the accident. This reduces litigation but also limits your ability to sue unless injuries meet New York's "serious injury threshold."

Uninsured Motorist Coverage (25/50)

Required to match your liability limits: • Protects you if hit by an uninsured driver • Covers medical bills and lost wages beyond PIP limits • About 6% of New York drivers are uninsured • You can increase UM limits higher than minimums (recommended)

For a complete breakdown, see our guide on minimum car insurance requirements by state.

Why New York Minimums May Not Be Enough

New York's minimums are better than many states, but still insufficient for serious accidents.

1. Medical costs exceed $25,000 per person quickly. • Average ER visit for serious injuries: $10,000–$50,000 • Surgery: $30,000–$150,000+ • ICU stays: $10,000+ per day • Spinal/brain injuries: $500,000–$3,000,000+

While your PIP covers your own medical bills up to $50,000, your liability only protects others up to $25,000 per person.

2. Property damage exceeds $10,000 easily. • Average new car: $48,000 • Luxury vehicles: $60,000–$120,000+ • Multi-vehicle accidents: $50,000–$100,000+ • Commercial property damage: $100,000+

New York City and Buffalo have high concentrations of expensive vehicles. $10,000 won't cover totaling most modern cars.

3. You're personally liable beyond policy limits. • Injured parties can sue for the difference • Courts can garnish wages, seize assets, place liens on your home • Bankruptcy may not discharge injury judgments

Real-world example: You cause a multi-car accident on the Thruway. You injure two people (driver: $80,000 in medical bills; passenger: $45,000) and total two vehicles ($35,000 Subaru Outback and $55,000 BMW X3).

Your 25/50/10 policy pays: • $25,000 for driver injuries (you owe $55,000) • $25,000 for passenger injuries (you owe $20,000) • $10,000 for vehicle damage (you owe $80,000)

Total you owe out of pocket: $155,000.

For guidance on adequate coverage, read how much car insurance do I need.

Recommended Coverage for New York Drivers

Most New York drivers should carry at least 100/300/100 coverage:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $100,000/$300,000 uninsured motorist coverage (match your liability limits)
• $50,000 PIP (state minimum)

Why 100/300/100 is better: • Covers most accidents without exposing personal assets • Only costs $300–$600/year more than minimum coverage • Protects your home, savings, and future wages • Demonstrates financial responsibility

Consider higher limits if: • You own a home or significant assets • You have high income or retirement savings • You drive in NYC, Buffalo, or high-traffic areas • You have teen drivers on your policy

Options include: • 250/500/100: Strong protection for homeowners • 500/500/100: Maximum coverage for high-net-worth individuals • Umbrella insurance: Adds $1–$5 million in liability protection beyond your auto policy (costs $200–$500/year)

Learn more in our guide on liability car insurance explained.

New York's No-Fault Insurance System

New York is one of 12 no-fault states.

Under no-fault law: • Your own PIP pays your medical bills and lost wages regardless of who caused the accident • You cannot sue the at-fault driver unless injuries meet the "serious injury threshold" • Reduces litigation and speeds up claim payments

Serious Injury Threshold

You can only sue for pain and suffering if injuries include: • Death • Dismemberment • Significant disfigurement • Fractures • Permanent loss of use of a body organ, member, function, or system • Permanent consequential limitation of use of a body organ or member • Significant limitation of use of a body function or system • Medically determined injury preventing substantially all daily activities for 90+ days within 180 days of the accident

If injuries don't meet this threshold, you're limited to PIP benefits—you can't sue for additional compensation.

Why PIP limits matter:

If your medical bills exceed $50,000 and injuries don't meet the serious injury threshold, you're responsible for costs beyond PIP. Consider optional higher PIP limits or Medical Payments (MedPay) coverage.

For more on no-fault insurance, see our guide on uninsured motorist coverage.

Penalties for Driving Without Insurance in New York

New York has some of the nation's strictest penalties for uninsured driving.

Civil penalties (DMV): • First offense: $150–$1,500 civil penalty • Subsequent offenses: $750–$1,500 • Daily penalties: $8/day for every day without insurance (up to $1,500)

License and registration suspension: • DMV suspends your license and registration immediately • Suspension remains until you provide proof of insurance • Pay reinstatement fees: $50–$100

Criminal penalties: • Driving with a suspended license: up to 15 days in jail, $200–$500 fine • Repeat offenders face higher fines and longer jail terms

Vehicle impoundment: • Police can seize your vehicle • Impound and tow fees: $150–$400+

SR-22 requirement: • Must file Form FS-20 (proof of insurance) with DMV • Required for 3 years after violations • Lapse triggers immediate suspension

Higher insurance costs: • Lapse in coverage increases premiums by 30–50% • May need high-risk insurance

Personal liability: • You're personally responsible for all accident damages • No insurance protection

For more on high-risk insurance, see our guide on SR-22 insurance.

Optional Coverage to Consider

Beyond state minimums, consider these coverages:

Collision coverage: • Covers damage to your vehicle in accidents (regardless of fault) • Required by lenders if you finance or lease • Recommended if your car is worth $3,000+

Comprehensive coverage: • Covers theft, vandalism, weather, fire, animal strikes • Required by lenders • Recommended for vehicles worth $3,000+

Learn more in our article on comprehensive vs collision insurance.

Increased PIP limits: • Standard: $50,000 • Optional: $100,000 or more • Recommended for high medical cost risk

Optional Basic Economic Loss (OBEL): • Lowers PIP limits to $25,000 in exchange for lower premiums • Only available if you have health insurance • Not recommended—medical costs exceed $25,000 quickly

Supplementary Uninsured/Underinsured Motorist (SUM): • Increases UM coverage beyond state minimums • Recommended: Match your liability limits (100/300)

Roadside assistance: • Towing, jump-starts, flat tire changes • Costs $10–$30/year

Rental car reimbursement: • Pays for rental while your car is repaired • Typically $30–$50/day for 30 days • Costs $20–$50/year

For full coverage options, see our guide on types of car insurance coverage.

How Much Does Car Insurance Cost in New York?

Average annual premiums in New York: • 25/50/10 + PIP (minimum): $1,500–$2,500/year • 100/300/100 + PIP (recommended): $1,800–$3,000/year • Full coverage: $2,500–$4,500/year

New York has higher premiums than the national average due to: • No-fault system (mandatory PIP increases costs) • High population density (more accidents) • Expensive metro areas (NYC, Buffalo) • High litigation rates

Factors that affect your rate: • Location (NYC is most expensive; upstate is cheaper) • Age (under 25 pays significantly more) • Driving record (accidents, tickets, DUIs) • Credit score (insurers use credit-based insurance scores) • Vehicle type (luxury and sports cars cost more) • Annual mileage • Coverage limits and deductibles

For tips on reducing costs, read how to lower car insurance.

How to Get Cheaper Car Insurance in New York

Compare quotes from multiple insurers. • Rates vary by hundreds of dollars between companies • Compare at least 3–5 quotes • Use tools like Coverwise to shop efficiently

Learn more in our guide on how to compare car insurance quotes.

Ask about discounts: • Good driver: 20–30% off • Bundling (home + auto): 15–25% off • Good student: 10–15% off • Low mileage: 5–15% off • Defensive driving course: 10% off (state-mandated discount) • Pay-in-full: 5–10% off • Anti-theft devices: 5–10% off

Take a defensive driving course: • New York requires insurers to offer a 10% discount for approved courses • Discount lasts 3 years • Costs $25–$50 (online or in-person)

Increase your deductibles: • Raising deductibles from $500 to $1,000 saves 10–20% • Only do this if you have emergency savings

Maintain continuous coverage: • Gaps in coverage increase rates by 30–50% • Even if not driving, keep non-owner insurance

Drive less: • Low-mileage or usage-based insurance (UBI) saves money • Programs like Snapshot, SmartRide track driving behavior

Frequently Asked Questions